TABLE 1-1

-Refer to Table 1-1. A student has only a few hours to prepare for two different exams tomorrow morning. The above table shows alternative possible exam outcomes with three alternative uses of the student's time. What is the opportunity cost of scoring an 84 on the history exam rather than a 76?
A) 10 points on the economics exam
B) 8 points on the history exam
C) 7 points on the economics exam
D) 12 points on the economics exam

Question

TABLE 1-1
 
-Refer to Table 1-1. A student has only a few hours to prepare for two different exams tomorrow morning. The above table shows alternative possible exam outcomes with three alternative uses of the student's time. What is the opportunity cost of scoring an 84 on the history exam rather than a 76?
A) 10 points on the economics exam 
B) 8 points on the history exam 
C) 7 points on the economics exam 
D) 12 points on the economics exam

Quizplus · Accepted Answer

The opportunity cost of scoring an 84 on the history exam rather than a 76 is the value of the next best alternative foregone, which is getting 7 points on the economics exam. Option C is the only choice that reflects the opportunity cost.

TABLE 1-1 -Refer to Table 1-1. a Student Has Only a Few